Nestlé SA may be close to finalizing a deal to acquire Dreyers’s Grand Ice Cream Inc.
The Federal Trade Commission dropped major objections to the deal after the two companies agreed to sell off some of their premium ice cream brands and distribution assets to CoolBrands International, Inc. in Ontario, Canada. CoolBrands sells the Eskimo Pie brand, according to news reports.
A final vote by a five-member commission could be made within weeks.
In March, the FTC moved to block the deal, alleging that the merger would hurt competition and boost ice cream prices for premium brands such as Nestlé’s Haagen Dazs and Dreyer’s Godiva. (March 11 Xtra)
Last summer, Switzerland-based Nestlé announced it planned to increase its stake in Oakland, CA-based Dreyer’s from 23% to 67% as part of a $2.8 billion deal that would eventually lead to full ownership (August 2002 PROMO).
Network
